Banking Law Archives - Lawwatch : Legal Resources for Aspiring Advocates

Banks have to Freeze Debit Operations in Suspicious Accounts Without Notice to the Account Holder

By K Rajasekharan 17 December 2025Banking Law, Negotiable Instruments

If a bank has reason to believe any unusual or suspicious transaction in a bank account it can freeze the debit operations of the account without notice to the account holder, as per the directions of the High Court in Abdul Azeez v Union of India [2025:KER:88312].

Writ Petitions Not Maintainable Against Private Companies in Banking

By K Rajasekharan 11 August 2025Banking Law

In S. Shobha v. Muthoot Finance Ltd., the Supreme Court of India clarified that a private financial institution, such as Muthoot Finance, is not automatically considered a "State" under Article 12 of the Constitution, even if it is regulated by the Reserve Bank of India (RBI). Consequently, it is generally not subject to writ jurisdiction under Article 226, unless it is performing a public function.

Courts & SROs Must Report Cash Transactions Above ₹2 Lakh to Tax Dept: SC Directs

By K Rajasekharan 17 April 2025Banking Law

The Supreme Court directs the Courts and Registration Authorities to report cash transactions exceeding ₹2 lakhs to the Income Tax Department, in a judgement in The Correspondence RBANMS Educational Institution VERSUS B. Gunashekar & Another [2025 INSC 490].

Restrictions on Cash Transfers in India

By K Rajasekharan 19 June 2021Banking Law

Cash, in the form or coins or currency notes, has been the major form of money used for financial transactions in India. But giving and accepting cash without knowing the restrictions imposed on cash transfers by the Income Tax Act and other statutes may put you in great trouble. This is an attempt to compile some of such restrictions at one place.